The North East was plunged into yet another jobs crisis today after bosses at an award-winning factory announced it is set to close.

Management at Littelfuse in Washington say they cannot compete against foreign imports and now plan to move production to the Far East.

More than 200 workers are to be thrown on the dole just a few hundred yards from electrical giant Philips where another 800 jobs are at risk. Another 1,000 in Durham are also under threat.

Dutch giant Philips is looking at its entire global operation and wants to cut around 7,000 jobs worldwide, with the North East in the firing line.

Stunned Littelfuse staff today arrived at the #4.7 million custom-built plant, which was opened only four years ago on the Stephenson Industrial Estate, to be told of the plans by bosses.

A woman who has been at the company for 15 years, but did not want to be named, said: "We're all in a state of shock. We thought we'd go on for a long time.

"The firm has been expanding and taking on more people for many years. We just can't believe it.

"There have been rumblings in the past about competition in Asia but no one expected this to happen."

A man, 26, said: "I left another firm to come here because I thought it would be more secure. Now I'll have to start looking for another job."

Director and general operations manager Colin McGeary said: "The local management team, working closely with appropriate corporate

representatives, pledges its full support to help best prepare for the future that lies ahead.

"Littelfuse is working closely with elected representatives and is committed to providing every assistance to help the workforce secure alternative employment."

The firm, which supplies fuses to the electronics and car industry, has been in the town for more than 30 years.

It was bought by the American company 25 years ago from Washington Electronics and won a Queen's Award to Industry for quality.

Houghton and Washington MP Fraser Kemp, who has the factory in his constituency, said: "I've been in touch with the company to express my concern and I understand this is at the proposal stage and that the company are looking at other viable options for the Washington plant which I will be actively encouraging.

"I will do all I can to ensure that one of these options is successful to save the jobs."

Carol McFarlane, regional officer of the AEEU, which represents some workers at the plant, said today: "We are very disappointed. It's a big blow.

"The factory has been on a three-day week since before Christmas and there was short time working before then.